Dollar closed at 63.5050 against its opening at 63.3200. Dollar posted its biggest intraday gain in four weeks on buying by nationalised banks likely on behalf of oil importers. Indian shares open higher tracking firm trade in Asian shares amid global growth optimism after the data release of US monthly wages pointed to the labor market strength. Also, Bombay Stock Exchange is scheduled to conduct auction for overseas investors for unutilised investment limit in government bonds worth Rs 66.66 billion later today. On account of that overseas fund inflows into local stocks is also expected in local debt market. Investors refrain from taking positions waiting for fresh cues expected oiut of upcoming data, mainly December retail sales and inflation data in US, due for release later this week.On data front, the non-manufacturing ISM index, which fell to 55.9 in December from 57.4 in November. Factory orders, meanwhile, rose 1.3% in November, exceeding expectations. Asian shares were mixed on Monday, following the strong lead from Wall Street in the last session.
BSE Sensex closed higher by 198.94 points at 34,352.79, while the Nifty 50 rose 64.75 points to close at 10,623.60.
INTERNATIONAL
Asian shares neared all-time peaks after Wall Street boasted its best start to a year in over a decade, with brisk economic growth and benign inflation proving a potent cocktail for risk appetite.
Gold prices held firm, below a 3-1/2-month peak hit last week, amid expectations of further U.S. interest rate hikes to come this year.
Oil prices firmed on the back of a slight decline in the number of U.S. rigs drilling for new production, with crude holding just below near three-year highs reached last week.
Japanese Prime Minister Shinzo Abe on Sunday called on central bank governor Haruhiko Kuroda to keep up efforts to reflate the economy, but added he was undecided on whether to reappoint Kuroda for another five-year term.